Corruption is on the rise in the Federal Board of Revenue (FBR) as the Directorate-General of Intelligence and Investigation (DGI&I)-FBR, Karachi, has been restrained from pursuing further lines of inquiry regarding mega sales tax fraud of Rs 4.41 billion to protect the stakes of some blue-eyed officers, Business Recorder learnt on Monday.
Contrary to its foreign commitments to run the tax departments in transparent and fair lines, the board has directed the DGI&I Karachi to stop further investigation into the mega sales tax fraud of Rs 4.41 billion by issuing a letter 113960-R dated March 18, 2010.
Sources told Business Recorder that the DGI&I had conducted an inquiry against Anas Trading Co to determine fraudulent credit of 'fake' input sales tax on the basis of bogus invoices. The department, while analysing monthly sales tax returns of the said company for the period July 2008 to June 2009, detected various other business units involved in this illicit business.
Therefore, the DGI&I had started tracking the purchases of Anas Trading Co, which showed that the purchases were initially generated, and rotated among various fake business units, just to show a fake rotation of sales and purchases. Moreover, sources said, the company had got credit of bogus invoices and input tax to the tune of Rs 180.06 million and Rs 37.922 million respectively during said period.
Similarly, some other bogus companies had also provided severe financial shocks of Rs 3.57 billion and Rs 614.91 million to the national exchequer on account of aforesaid heads, respectively. Sources said that the department also came to know, after the scrutiny of said details, that several influential mafias are active in this illicit business with the connivance of tax officials.
Keeping this information in view, the DGI&I, Karachi had sent a detailed report to the FBR, seeking permission to expand the level of inquiry in this connection. But, the DGI&I has only been allowed extending the level of investigation on income tax side, just to safeguard the interests of some blue-eyed officers, sources added.
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